Thursday, August 8, 2013

Mr. Kranthi Mohan a leading bank’s customer
has filed a case against his home loan funded bank about not revealing complete
details of repayment structure which affected him badly in the situation where
he is not able to repay the home loan EMI’s in time due to job loss. Most of
the customers who apply for home loans in Bangalore are always in a hurry to
close the process with the pressure of the builder for their payment schedule.

A home loan is a product which banks offer
customer to purchase a property with simple and affordable EMI’s with a maximum
repayment period of 20 years. Home loans in Bangalore have seen a steep raise
in their business with the increase in purchases of real estate properties. But
having complete knowledge is most important than completing the process in
time. Lets see where all the customers do mistakes when it comes to home loan
and resolve the issues for hassle free process who wish to go for a loan to own
their dream house

A home loan application will have two
applicants in which most of the people feel and believe that co-applicant is
not liable of repayment when only applicant income is considered. A
co-applicant is equally liable as applicant even his/her income is considered
or not. Now lets see the cases when the interest rates are going up, in this
case a customer can opt for Fixed Rate of Interest by paying switching fee from
Floating to fixed which can save considerable amount to customer. Banks will
increase the tenure initially when there is a change in interest rates and when
the repayment period crosses 300 months then banks increase the EMI. Customers
can opt for increase in EMI amount at any point during the tenure which in turn
reduces the repayment period thus reducing the interest paid to bank.

All banks/financial institutions offer Home
loan linked life insurance with one time premium which cover the applicant’s
life again the home loan. If any risk occurs to the applicant then the complete
loan will be cleared by the insurance company and the documents will be
released to co-applicant. All the customers are suggested to opt for Home loan
linked insurance which is a cover in difficult situations.

Banks provide customers of some facilities like
switching the home loan to other bank for better interest benefits, pre closing
the loan, making part payment towards the home loan account amount of which
will directly deducted from principal amounts, interest rates switching, Income
Tax benefits on interest paid amounts etc. A simple ground work on these things
will save huge amount which a customer pay due to lack of knowledge on the
products.